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Break-Even Calculator

Calculate exactly how much you need to sell to become profitable. Visualize your business's cost vs revenue intersection.

Break-Even Parameters

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Mastering Your Business Viability

Knowing your break-even point is the foundation of a healthy business. It removes the guesswork from pricing and helps you set realistic sales targets for your team.

Our Break-Even Calculator takes your fixed overheads and variable production costs to show you the exact number of units—and total revenue—required to start generating profit.

Pricing Decisions

Use the calculator to see how a $5 price increase affects your break-even volume. Often, a small price hike can significantly lower the amount of work needed to stay profitable.

Budgeting Ads

If you know your break-even units, you can better plan your ad budget. Ensure your customer acquisition cost (CAC) doesn't push you back into the red.

When to Run a Break-Even Analysis

  • 1

    Launching a New Product

    Determine if the market size is large enough to support the sales volume you need to cover production costs.

  • 2

    Changing Business Model

    If you are moving from a service model to a subscription model, find the subscriber count needed to replace your current revenue.

  • 3

    Scaling Operations

    Before hiring new staff or renting a larger warehouse, calculate how much additional revenue is needed to justify the increased fixed costs.

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Frequently Asked Questions

What is the break-even point?▼
The break-even point is the moment when your total revenue equals your total costs. At this point, your business is neither making a profit nor losing money. Every sale beyond this point contributes to your net profit.
What are fixed vs variable costs?▼
Fixed costs (e.g., rent, salaries, software) remain the same regardless of how much you sell. Variable costs (e.g., raw materials, packaging, shipping) increase directly with each unit produced and sold.
Why can't I break even if variable cost is higher than price?▼
If it costs you more to make a product than you sell it for, every sale increases your total loss. You must either raise your price or lower your variable costs to reach a state where break-even is possible.
Does break-even include taxes?▼
Standard break-even analysis usually looks at 'operating' break-even before income taxes. However, you can include estimated sales taxes or predictable business taxes as part of your fixed or variable costs for a more conservative estimate.
How to reduce my break-even point?▼
You can lower your break-even point by: 1) Reducing fixed costs (downsizing office space), 2) Lowering variable costs (negotiating better rates with suppliers), or 3) Increasing your selling price.
What is contribution margin?▼
Contribution margin is the selling price minus the variable cost per unit. It represents the amount of money each sale 'contributes' toward paying off your fixed costs.
Break-even vs profit margin?▼
Break-even tells you the volume you need to survive. Profit margin tells you how efficient your sales are at generating profit. Both are essential for understanding business health.
Is my data stored?▼
No. All calculations happen locally in your browser. We never see or store your business's financial data.